Did you know it is now a requirement to have a Director ID?
Why you need a Director ID?
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help to:
prevent the use of false or fraudulent director identities
make it easier for external administrators and regulators to trace directors’ relationships with companies over time
identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:
employees miss out on wages, superannuation and entitlements
suppliers or sub-contractors are left unpaid
other businesses are put at a competitive disadvantage
the community misses out on revenue that could have contributed to community services.
Did you know it is now a requirement to have a Director ID?
When you need to apply for a director ID, depends on when you became a director.
If you: – become a director from 1 November 2021 to 4 April 2022, you must apply for a director ID within 28 days of your appointment – become a director on or after 5 April 2022 you will need to apply prior to your appointment – were a director on or before 31 October 2021, you have until 30 November 2022 to apply.
For more details visit https://www.abrs.gov.au/director-identification-number/about-director-id